Baidu Target of Unusually High Options Trading (NASDAQ:BIDU)

Key Points

• On Wednesday, investors purchased 58,061 call options for Baidu, indicating a significant 42% increase over the typical volume of options traded.
• Analysts have mixed ratings on Baidu: while Jefferies and Benchmark issued "buy" ratings, others like Wall Street Zen downgraded the stock to "sell," leading to an average target price of $104.00.
• Institutional investors have recently adjusted their positions in Baidu, with Northern Trust Corp increasing its stake by 68.9%, reflecting growing interest among major financial players.

Baidu, Inc. (NASDAQ:BIDU - Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 58,061 call options on the company. Thisrepresentsanincreaseofapproximately42% compared to the average volume of 40,967 call options.

Baidu Price Performance

BIDU traded up $3.75 during midday trading on Friday, hitting $101.96. 7,269,151 shares of the company traded hands, compared to its average volume of 4,633,028. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $35.22 billion, a price-to-earnings ratio of 9.40 and a beta of 0.34. Baidu has a 52-week low of $74.71 and a 52-week high of $116.25. The business has a 50 day simple moving average of $89.58 and a two-hundred day simple moving average of $88.58.

Hedge Funds Weigh In On Baidu

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Creekmur Asset Management LLC purchased a new position in Baidu during the first quarter valued at $29,000. Assetmark Inc. lifted its stake in shares of Baidu by 143.3% in the first quarter. Assetmark Inc. now owns 326 shares of the information services provider's stock worth $30,000 after buying an additional 192 shares in the last quarter. Binnacle Investments Inc purchased a new position in shares of Baidu in the second quarter worth about $29,000. UMB Bank n.a. lifted its stake in shares of Baidu by 80.3% in the first quarter. UMB Bank n.a. now owns 402 shares of the information services provider's stock worth $37,000 after buying an additional 179 shares in the last quarter. Finally, Winthrop Capital Management LLC purchased a new position in shares of Baidu in the second quarter worth about $39,000.

Wall Street Analyst Weigh In

BIDU has been the topic of a number of research reports. Susquehanna increased their price objective on shares of Baidu from $85.00 to $95.00 and gave the stock a "neutral" rating in a research note on Tuesday. Jefferies Financial Group cut their price objective on shares of Baidu from $120.00 to $110.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Citigroup increased their price objective on shares of Baidu from $138.00 to $140.00 and gave the stock a "buy" rating in a research note on Thursday, July 17th. Wall Street Zen lowered shares of Baidu from a "hold" rating to a "sell" rating in a research note on Friday, August 22nd. Finally, Macquarie restated a "neutral" rating on shares of Baidu in a research report on Wednesday, May 21st. Five equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, Baidu has a consensus rating of "Hold" and an average price target of $104.00.

Baidu Company Profile

Baidu, Inc engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app.